Credit Assignment - Revenue and Taxation Code Section 23663
Introduction
Revenue and Taxation Code (R&TC) Section 23663 allows the assignment of credits among members of the same combined report, as added by Section 10 of AB 1452 (Stats. 2008, ch. 763).
California Code of Regulations sections 23663-1 to 23663-5 provides guidance for the treatment of defective credit assignment elections. The regulations provide 1) standard rules setting forth how credits are allocated when a defective assignment occurs, 2) flexibility for taxpayers to determine the allocation of defectively assigned credits when taxpayer make such requests before they have been audited, and 3) rules to request the correction of certain defective assignments.
Effective date
R&TC Section 23663 is specifically operative for assignments made in taxable years beginning on or after July 1, 2008, with assigned credits only being able to be applied against the "tax" of the assignee in taxable years beginning on or after January 1, 2010.
California Code of Regulations sections 23663-1 to 23663-5 are effective for all adjustments requested by taxpayers or made by us as of September 18, 2018. See FTB Notice 2018-03 for details on how to make such requests.
Contact
For any questions email: FTB Credit Assignment@FTB
Resources
- Frequently Asked Questions (updated 01/02/19)
- FTB Notice 2018-03
- TAM 2018-01
- Regulatory Process meeting- September 21, 2018
- Draft Language Regulation 23663-6
- Explanation and Background Regulation 23663-6
- FTB 3544 - Election to Assign Credit Within Combined Reporting Group
- 2018 Instructions for Form FTB 3544
- FTB 3544A - List of Assigned Credit Received and/or Claimed By Assignee
- 2018 Instructions for Form FTB 3544A
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Last Updated: 12.11.2018
